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Legal Validity of eSignatures: What Businesses Need to Know

Updated: 2 days ago

Exploring Global Legal Perspectives on Electronic Signatures

Electronic signatures (eSignatures) have been legally recognized in many parts of the world for over two decades. In the U.S., legislation around the legality of digital signatures began forming in 1999, culminating in the passage of the ESIGN Act in 2000.


Globally, eSignature regulations were adopted between 2000 and 2002, allowing digital signing to become a standard practice for businesses, governments, and individuals. Over time, these laws have been updated to reflect advances in technology and business needs.


For instance, New Zealand’s Electronic Transactions Act 2002 laid the foundation for digital signatures, later strengthened by the Contract and Commercial Law Act 2017, which clarified when an eSignature is legally valid and which documents still require a handwritten signature.


If your organization uses or is planning to adopt eSignature technology, understanding the legal framework is essential to ensure full compliance across jurisdictions.


What Is an eSignature?

To understand the legal framework, we must first define what constitutes an eSignature. An electronic signature is any digital indication of a person’s agreement to the terms of a document. It can take several forms—typed names, checkboxes, handwritten signatures on touchscreens, and more.


Importantly, eSignatures are not the same as digital signatures, though they often work together. A digital signature uses encryption, identity verification, and authentication methods to confirm a signer’s identity and ensure document integrity. Common authentication methods include multi-factor verification, biometric data, or IP address tagging.


This combination—an eSignature supported by a digital signature—adds a vital layer of trust and security, which is often required for legal recognition.

Women signing a contract using Dropbox Sign on an iPad.

Legal Requirements for Electronic Signatures

While specific laws differ by country, most jurisdictions share five key criteria for a legally valid electronic signature:


1. Intent to Sign

Just like a traditional signature, an electronic one must be applied with the signer’s clear intention to agree to the document’s terms.


2. Consent to Do Business Electronically

All parties must agree to use digital signatures. This consent can be recorded via checkbox or verified through a digital identity process.


3. Association of the Signature with the Document

It must be clear which individual signed which document. This often involves a secure audit trail that links the signer to the document they reviewed and signed.


4. Attribution

You must be able to confirm the signer’s identity. This can be done through digital verification tools such as multi-factor authentication or secure email confirmations.


5. Retention and Access

Legally signed digital documents must be stored securely and be retrievable by all parties for future reference. Many eSignature platforms, like Dropbox Sign, integrate with document management systems to support secure storage and version control.


Global eSignature Legality Overview

Let’s explore how some key regions address electronic signature laws:


United States

  • Governed federally by the ESIGN Act, and at the state level by the Uniform Electronic Transactions Act (UETA).

  • Both provide a legal framework for recognizing eSignatures in most business and government documents.


New Zealand & Australia

  • New Zealand: Contract and Commercial Law Act 2017

  • Australia: Electronic Transactions Act 1999

  • Both follow similar principles to the U.S., with a focus on identity verification, consent, and intent.

  • Australia also allows remote witnessing in certain legal cases.


United Kingdom & European Union

  • UK: Electronic Signatures Regulations 2002

  • EU: eIDAS Regulation (EU 910/2014)

  • Both regions classify electronic signatures into three categories:

    • Standard Electronic Signature (SES)

    • Advanced Electronic Signature (AES)

    • Qualified Electronic Signature (QES)

  • AES and QES are often required for high-security or court-related documents.


Common Exemptions

Not all documents are eligible for digital signing. Common exclusions across many jurisdictions include:

  • Wills and testamentary documents

  • Adoption or divorce proceedings

  • Marriage certificates

  • Some real estate transactions

  • Insurance benefit terminations

Always verify local laws to ensure your use of eSignatures is compliant.


Staying Compliant with eSignature Laws

To remain compliant, your organization should:

  • Use a reputable eSignature solution that supports identity verification and document encryption

  • Ensure your solution meets audit, storage, and accessibility standards

  • Confirm that all parties involved have provided electronic consent


Platforms like Dropbox Sign offer built-in compliance features and seamless integration with business software. Working with a digital transformation partner like Shake IT ensures that your eSignature implementation aligns with international legal standards and your business goals.


Final Thoughts: Embrace Legally Compliant eSignatures

Electronic signatures offer convenience, speed, and enhanced security—but only when implemented correctly. By aligning with global legal frameworks and ensuring secure digital identity verification, organizations can leverage eSignatures with full confidence in their legal enforceability.

If you're ready to modernize your document workflows with a legally compliant eSignature solution, connect with the experts at Shake IT to explore the best-fit tools and strategies for your business.



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